Kenya: M-Pesa Taps Into Pesapoint’s National Network

The biggest mobile money service, M-Pesa, is eyeing increased cash transactions from more local banks as the concept of mobile banking becomes firmly rooted in the market. Safaricom has added 12 more financial institutions to its transactions network making a total of 132 financial institutions connected to M-pesa.

Yesterday it signed a deal with Paynet Group, which will enable bank customers on the PesaPoint ATM network to transfer funds from their accounts to their phones. PesaPoint has 28 financial institutions on its network.

M-pesa, which in the initial years had been ignored by banks,is now almost indispensable. Before this deal it had 25 banks and 95 Saccos and micro finance Institutions on its link. “As part of our agenda to bring financial inclusion to all Kenyans, M-pesa continues to to enter in to strategic partnerships with both non-financial and financial institutions,” said Betty Mwangi, Safaricom’s General Manager of Financial Services.

The partnership will give M-pesa customers with accounts in the PesaPoint network banks access to their cash 24 hours with a maximum limit of Sh20 000 per transaction. The existing bank-mobile links have been with individual banks like KCB Connect, Family Bank’s Pesa Pap, Equity Bank’s M-Kesho and co-operative bank.

The partnership with PesaPoint will link other smaller banks that are not on the mobile banking platform. The competitors Airtel money, yuCash and Orange money have also been growing partnerships with banks.

Recently Airtel Money launched of a new loan facility in partnership with microfinance institution ,Faulu Kenya. In the last financial year M-pesa raked in Sh16.9billion revenue which was up 43 per cent from the previous year. “This partnership will also expand our agent outlets bringing new ATMs”said Mwangi .M-pesa as about 39,400 agents across the country. PesaPoint has 80 ATMs across.